A resource-based approach to the valuation of African startups by venture capitalists
Date
2021
Authors
Odidambo, Blair Obanda
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Abstract
The valuation of a new firm is instrumental in entrepreneur financing. This research aims to
create a consistent theoretical structure that seeks to determine whether variables identified as
basic to a firm's performance in strategy theories explain the valuation of startups by venture
capitalists.
The main proposition of this research is that venture capitalists assess the variables that are
essential to companies ' efficiency in valuing fresh companies. The specific pointer that
venture capitalists look into is the qualities of the founder. This pointer will influence
startups' valuation by venture capitalists when entrepreneurs seek financing from venture
capitalists at the early development stages.
The empirical findings of this study would also seek to develop an initial theoretical linkage
between under-researched literature on venture capital maintenance and well-developed
theories in strategic management. A theoretical rigor is added to the literature on investments
by venture capitalists with the introduction ofthis approach.
Description
Submitted in partial fulfillment of the requirements for the Degree of Bachelor of
Business Science in Actua1ial Science at Strathmore University